Australian auction clearance rates hit another multi-year low as Sydney sales slide again

Australian auction clearance rates fell to the lowest level since early 2013 last week, according to final figures released by CoreLogic today.

Across the capitals, just 56.8% of properties sold at auction, down from 58.2% in the previous week. Only a year ago, 73.1% of auctions resulted in a sale, underlining the scale of the slowdown seen over the past 12 months.

CoreLogic

The decline came despite fewer properties being put up for sale, falling to 2,100 from 2,279 a week earlier.

As seen in the table below, it was Sydney, where just 54% of properties sold, that drove the national figure lower.

CoreLogic

“Sydney’s final auction clearance rate fell to 54%, the lowest recorded since late 2017,” CoreLogic said. “672 homes were taken to auction which was lower than the week prior when 787 auctions were held and a higher 57.5% cleared.”

In contrast, Melbourne’s auction market — the busiest in the country — fared better with 62% of properties selling, up from 59.8% a week earlier.

Like Sydney, auction volumes were lower than a week earlier, falling to 1,033 from 1,099.

Across the remaining auction markets, Adelaide was the only capital city to see an increase in its clearance rate.

Turning to the week ahead, Sydney’s auction market faces another stern test with the number of properties scheduled to go under the hammer lifting by 15% to 775.

Melbourne is also expected to see a small increase, rising to 1,064 from 1,033 a week earlier.

Auction volumes are set to decline in all other capital cities except Tasmania over the week.